Parent::[[Banking Policy]], [[Government Responsibility]], [[Legislation]] # Synopsis Describe why government regulation as a more detrimental influence that either taxation or monetary expansion. It's the only form of intervention for which no positive benefit occurs. Regulation represent a process by which government forces individuals to use their persons or property in ways they might not otherwise use. Regulation **GOVERNMENT REGULATION** **Government regulation interferes with people's right to interact freely in an open market.** Government regulation amounts to one of the most insidious forms of economic intervention. Politicians sell the idea that markets require regulation in order to protect producers, consumers, and the general population. Regulations not only interfere with people's right to interact freely it also distorts the allocation of economic resources. # Draft # Regulation The most obvious intervention of minimum wage laws occurs in the form of regulation. Regulations attempt to get people to shift their preferences by defining acceptable behavior then imposing some form of penalty for non-compliance. Many (most) business licenses do nothing to improve the quality of a product or service provided. The business owners simply prefer to pay for a license and stay in business than close the business and pay a fine or go to jail. Minimum wage laws apply the same sort of limitations on the free exchange of labor for fair compensation. These laws tell employers that they will receive a punishment for providing a job for less than an arbitrary sum. Employers will prefer not offering a job that they value less than the regulated minimum than providing the job and suffering a penalty. Minimum wage laws don’t raise wages. They take lower-paying jobs off the market. People willing to accept less pay have opportunities taken from them. ## Government Regulation Regulation forces segments of the population to engage in activities which they would not otherwise choose. They must consume resources they would not consume if left to their own choices. Similar to spending, regulation leads to the use of more carbon fuels than would have occurred without such regulation. --- # References [[Existing Government Intervention]] [[Patriot Act]]